Dublin, Dec. 30, 2025 (GLOBE NEWSWIRE) — The “Carbon-Neutral Fuels Market – Global Strategic Business Report” has been added to ResearchAndMarkets.com’s offering.
The global market for Carbon-Neutral Fuels was valued at US$88.4 Billion in 2024 and is projected to reach US$126.5 Billion by 2030, growing at a CAGR of 6.2% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.
The growth in the carbon-neutral fuels market is driven by several intertwined factors spanning environmental targets, industrial demand, technological viability, and strategic policy support. At the core is the global push toward net-zero emissions, with more than 140 countries and thousands of corporations committing to carbon neutrality by mid-century. This sweeping commitment is translating into direct demand for low-emission alternatives in sectors that cannot easily electrify – aviation, marine shipping, heavy manufacturing, and long-haul freight.
On the technology side, the rapid maturation of green hydrogen electrolysis, CO2-to-fuel conversion, and biomass gasification is enabling large-scale, commercially viable production pathways. From an end-use perspective, industries are eager to decarbonize without overhauling existing infrastructure, making drop-in carbon-neutral fuels an attractive proposition. Consumer and corporate behavior is evolving, with rising scrutiny of Scope 3 emissions, greater interest in sustainable sourcing, and ESG frameworks pushing companies to adopt low-carbon fuel solutions.
Policy support is equally vital, with tax incentives, fuel blending mandates, infrastructure funding, and clean energy subsidies helping bridge the economic gap between conventional and carbon-neutral fuels. Additionally, geopolitical concerns over energy security and fuel independence are prompting many nations to invest in local, renewables-based fuel production, reducing reliance on imported fossil fuels.
International cooperation through climate accords and technology-sharing partnerships is further accelerating knowledge transfer and deployment. Together, these drivers are not only propelling the carbon-neutral fuels market forward but are also positioning it as a foundational pillar of the emerging global green energy economy.
Report Scope
The report analyzes the Carbon-Neutral Fuels market, presented in terms of market value (US$). The analysis covers the key segments and geographic regions outlined below:
- Segments: Feedstock (Carbon Dioxide Feedstock, Hydrogen Feedstock, Plant Starches Feedstock, Animal Fats Feedstock, Vegetable Oil Feedstock, Other Feedstocks); Type (Hydrogen Cells Type, Biodiesel Type, Bioethanol Type, Biobutanol Type, Methanol Type, Algae Type, Other Types); Application (Automobiles Application, Ships Application, Aircrafts Application, Trains Application, Power Generation Application, Chemicals Application, Other Applications).
- Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Carbon Dioxide Feedstock segment, which is expected to reach US$33.9 Billion by 2030 with a CAGR of a 4.5%. The Hydrogen Feedstock segment is also set to grow at 7.8% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $24.1 Billion in 2024, and China, forecasted to grow at an impressive 9.4% CAGR to reach $25.4 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 34 companies featured in this Carbon-Neutral Fuels market report include:
- ADM (Archer Daniels Midland)
- BP plc
- Chevron Corporation
- Cosan S.A.
- Dioxide Materials
- Enerkem Inc.
- Eni S.p.A.
- ExxonMobil Corporation
- FuelCell Energy, Inc.
- HIF Global
- Indian Oil Corporation Limited
- LanzaTech
- Neste Corporation
- PetroChina Company Limited
- Phillips 66
- Repsol S.A.
- Saudi Aramco
- Shell plc
- Sinopec Group
- TotalEnergies SE
Key Attributes
| Report Attribute | Details |
| No. of Pages | 400 |
| Forecast Period | 2024-2030 |
| Estimated Market Value (USD) in 2024 | $88.4 Billion |
| Forecasted Market Value (USD) by 2030 | $126.5 Billion |
| Compound Annual Growth Rate | 6.2% |
| Regions Covered | Global |
MARKET OVERVIEW
- Trade Shocks, Uncertainty, and the Structural Rewiring of the Global Economy
- World Market Trajectories
- How Trump’s Tariffs Impact the Market? The Big Question on Everyone’s Mind
- Carbon-Neutral Fuels – Global Key Competitors Percentage Market Share in 2025 (E)
- Competitive Market Presence – Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)
MARKET TRENDS & DRIVERS
- Global Decarbonization Targets Throw the Spotlight on Carbon-Neutral Fuels as Next-Gen Energy Alternatives
- Stricter Emission Regulations Accelerate Demand for Low-Carbon and Renewable Fuel Substitutes
- Expansion of Net-Zero Commitments by Corporates and Governments Strengthens the Business Case for Carbon-Neutral Fuel Adoption
- Growing Investment in Green Hydrogen and E-Fuels Expands the Addressable Market for Synthetic Carbon-Neutral Fuels
- Electrification Gaps in Aviation and Shipping Propel Growth in Drop-In, Carbon-Neutral Liquid Fuels
- Carbon Pricing and Emission Trading Schemes Generate Economic Incentives for Transition to Cleaner Fuel Alternatives
- Integration with Carbon Capture and Utilization Technologies Spurs Innovation in Closed-Loop Fuel Cycles
- Renewable Power Surplus Utilization Drives Adoption of Power-to-Liquid and Power-to-Gas Fuel Pathways
- Bio-Based Feedstocks and Advanced Algal Sources Open New Vistas for Sustainable Carbon-Neutral Fuel Production
- Lifecycle Emission Accounting and Scope 3 Reduction Pressures Boost Market Demand from ESG-Conscious Buyers
- Global Supply Chain Decarbonization Efforts Strengthen Market Viability of Low-Carbon Freight and Logistics Fuels
For more information about this report visit https://www.researchandmarkets.com/r/hen9ak
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
- Carbon-Neutral Fuels Market
